India can truly develop and attract much-needed investment by implementing sustainable corporate governance practices in a manner which is transparent and applicable to all, NRI industrialist Lord Swraj Paul has said.
Paul, in his remarks at the 16th Global Convention of Indian Institute Directors here, said India seems to be heading in the right direction to end corruption, especially in the case of high-level corruption.
"I am very pleased that Prime Minister Narendra Modi and his government have started to make some real inroads, especially in the case of high-level corruption, through the imposition of more robust and rigorous corporate governance standards, policies and procedures," the Chairman of the Caparo Industries said.
"Of course there remains an awful lot more to be done and it will certainly take time for these changes to permeate through the system, though it is happening already. At last there is progress and, not before time, India seems to be heading in the right direction," he said.
Paul asserted that basic changes are in place and hopes are high.
"However, the only way India can truly develop and prosper is to implement sustainable corporate governance practice in a manner which is transparent and applicable to all. This way we will be able to attract much needed investment and develop valuable international trade collaborations," he said.
Observing that corporate governance should not be reduced to a statement on a balance sheet, Paul said, "it has to be put into practice".
"This path is surely the right one to follow as it will ultimately lead to the supply of much needed employment opportunities which can benefit all of our citizens," he said.
Paul said the industrial growth of India is reliant on a framework of sustainable corporate governance which eliminates corruption in any form.
He, however, said, "alongside these reforms it is essential that we continue to attract foreign direct investment, facilitate expatriate engagement and involvement, promote and support our manufacturing base and invest in education."
Congratulating Prime Minister Modi for what he has achieved already, Paul said, "I am sure it will encourage even more investments into India".
He said Prime Minister Modi, Finance Minister Arun Jaitley and the government have begun to deliver the reform "we have been calling for".
"Positive strides have been made and these are beginning to enable businesses to prosper and grow. Encouragingly, the Modi government has also begun to open talks with leaders of other countries which, over time, I hope will lead to more transparency about overseas investments and money deposited outside the country, which should be directly benefiting our great country but currently (it) is not," he said.
Paul hoped that progress would continue in this area.
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